Danel (DANE) AI Stock Analysis

• Market Cap: 2.49B
• Dividend Yield: 1.4%
• Average Volume (3M): 13.74K
• Price to Earnings (P/E): 98.9
• Beta (1Y): 1.03
• Revenue Growth: 9.32%
• EPS Growth: N/A
• Country: IL
• Employees: 4,290
• Sector: Consumer Defensive
• Sector Strength: 66
• Industry: Medical - Care Facilities
• EPS (TTM): 535.10
• Shares Outstanding: 5,886,113
• 10 Day Avg. Volume: 22,292
• 30 Day Avg. Volume: 13,743
• PEG Ratio: -0.36
• Price to Book (P/B): 3.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.44
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: 47,392.00 ▲(23.74%Upside)

Danel's stock demonstrates strong financial performance and positive technical momentum, but is countered by overvaluation concerns. The strong revenue growth and improved profitability play a significant role, while the technical indicators suggest caution due to overbought conditions.

Danel Business Overview & Revenue Model

Company Description

Danel (Adir Yeoshua) Ltd provides human resources services in Israel. It offers recruitment, placement, payroll, and project management services in the areas of welfare, education, high-tech, cleantech, biotech, finance, insurance, administration, and senior executives; and nursing services. The company also operates centers for special education and people with learning disabilities. It serves government ministries, public bodies, the defense industries, and private companies. The company was founded in 1974 and is based in Ramat Gan, Israel.

How the Company Makes Money

Danel generates revenue primarily through the sale and licensing of its AI software and analytics platforms. The company offers subscription-based models where clients pay on a recurring basis for access to its software services. Additionally, Danel provides consulting and implementation services, generating income from helping businesses integrate AI solutions into their existing systems. Key revenue streams include software licensing fees, subscription revenues, and consulting fees. Significant partnerships with industry leaders and collaborations with major corporations further enhance Danel's market reach and contribute to its earnings by expanding its client base and opening new markets for its products.

Danel Financial Statement Overview

Summary

Danel has demonstrated solid revenue growth and improved profitability. With a stable equity position and efficient cash flow management, the company is on a positive trajectory. Continued focus on enhancing net profitability and shareholder returns is essential.

Income Statement

Danel has shown a solid revenue growth rate of 10.19% from 2023 to 2024, reflecting a strong upward trajectory in sales. The gross profit margin for 2024 stood at 18.43%, indicating efficient cost management. The net profit margin improved significantly to 0.74% in 2024 from a negative margin in 2023, showcasing recovering profitability. EBIT margin increased to 6.09%, and EBITDA margin was 4.37%, both indicating improved operational efficiency. However, the company needs to continue enhancing profitability to sustain this growth momentum.

Balance Sheet

Danel's balance sheet reflects a stable equity position with a debt-to-equity ratio of 0.80, suggesting manageable leverage levels. The return on equity (ROE) for 2024 was 4.54%, indicating moderate efficiency in generating returns for shareholders. The equity ratio was 34.47%, implying a solid equity base. While the company maintains a strong asset base, further improvements in ROE are desirable to enhance shareholder value.

Cash Flow

The cash flow statement reveals a healthy free cash flow growth rate of 19.60% from 2023 to 2024, indicating strong cash generation capabilities. The operating cash flow to net income ratio was 10.87, demonstrating robust cash flow relative to net earnings. The free cash flow to net income ratio was 9.15, signifying efficient cash conversion. Continued focus on maintaining strong cash flows will support future investments and debt reduction.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.77B	2.51B	2.36B	2.29B	1.98B
	Gross Profit
510.71M	458.31M	464.44M	492.51M	410.04M
	EBIT
168.72M	64.65M	179.87M	228.83M	183.87M
	EBITDA
121.11M	84.01M	206.17M	266.25M	216.13M
	Net Income Common Stockholders
20.51M	-11.22M	115.79M	174.15M	127.36M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
251.20M	185.15M	139.98M	81.09M	141.41M
	Total Assets
1.31B	1.30B	1.27B	1.13B	1.02B
	Total Debt
363.56M	376.07M	335.48M	262.58M	193.71M
	Net Debt
112.36M	190.92M	195.50M	181.49M	52.30M
	Total Liabilities
853.41M	816.38M	758.19M	729.68M	688.47M
	Stockholders Equity
452.26M	471.44M	493.17M	364.45M	291.45M
Cash Flow		Free Cash Flow
187.65M	156.91M	141.66M	180.19M	243.20M
	Operating Cash Flow
223.06M	206.72M	205.71M	231.64M	266.34M
	Investing Cash Flow
-34.05M	-73.82M	-79.02M	-124.25M	-56.24M
	Financing Cash Flow
-122.96M	-87.73M	-67.80M	-167.71M	-133.40M

Danel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38300.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:DANE, the sentiment is Positive. The current price of 38300 is below the 20-day moving average (MA) of 40699.25, below the 50-day MA of 39530.27, and below the 200-day MA of 38811.33, indicating a bullish trend. The MACD of 902.11 indicates Negative momentum. The RSI at 63.21 is Neutral, neither overbought nor oversold. The STOCH value of 90.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:DANE.

Danel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DANE	66 Neutral	2.49B	98.89		1.40%	9.32%	―
Sector *	65 Neutral	$8.81B	14.92	4.67%	6.17%	3.60%	-2.89%
ORTC		35.30M	―		3.16%	―	―

Danel Corporate Events

Danel Announces Securities Management Changes

Danel (Adir Yehoshua) Ltd. announced changes in its securities management, specifically the exercise of 1,898 options from Danel App 2023, leading to the allocation of 1,898 regular shares. These changes were facilitated by IBI Incentive Plan (2000) Ltd. through the stock exchange clearing house and involve fully redeemed securities with the consideration fully received.